Full Time Social Security

[OneMarcilV]

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Originally Posted by sheehs1 I normally keep a copy of everything! I have been thru both of my Social Security files (one for planning and one is actual) and it's not there. Perhaps I misfiled it. I even signed onto "My Social Security" to see if by chance they have a record or an example of the letter. No luck. I was able to verify the earnings they post for me seems to be the gross minus what I pay in for social security/self employment taxes. The gross is reported on my taxes as well as the social security tax I pay in, which is on a separate line. So I guess they are picking it up off my taxes. Perhaps if others have or are starting to get these income verification letters, they can weigh in on the wording of "net earnings" or something to that affect.

I keep everything like that. Both a photograph and on paper,

[OneMarcilV]

A friend of mine told me that him worked too many hours and what Social Security did on him was issue him his allowed amount every month. Then at the end of the year found out him worked too many hours then him had to pay back the overpaid monies Social Security gave him. The same friend told me that is because Social Security does not know how much monies one makes until one files their taxes.

Does this make any sense?

[PartIrish]

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Originally Posted by MaryLouMaloney True but also adding what is made working full time and collecting the Social Security allowance well give me more monies now. Here is what I figured. Earn 27,040 Working. Earn 11,760 Social Security. This 15,280 is the difference. Social Security deducts 7,640. Earn 4,168 from Social Security. Earn 31,208 total. Earn 2600 a month. Earn 600 each week. Earn 80.00 extra a week. Earn 320.00 extra a month. Earn 16,640 a year extra. So when reaching full retirement age I will receive the held back monies which will be 30,560. Plus working part time some companies can cut ones hours way under the 29 allowed per week. I can always ask for part time at a later date to see how this works out.

Your equation is a little off. If you collect Social Security before full retirement age, the 2019 earnings limit is $17,640. So in your example above, that means that your earned income ($27,040) minus the earnings limit ($17,640) = $9400. The $9400 is the amount subject to earnings penalty by Social Security. SS will take back $1 for every $2 of that $9400 out of your social security check.

[OneMarcilV]

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Originally Posted by PartIrish Your equation is a little off. If you collect Social Security before full retirement age, the 2019 earnings limit is $17,640. So in your example above, that means that your earned income ($27,040) minus the earnings limit ($17,640) = $9400. The $9400 is the amount subject to earnings penalty by Social Security. SS will take back $1 for every $2 of that $9400 out of your social security check.

Much appreciate the reply. I would rather have the overage monies taken out now rather than having to pay monies back like my friend said him had to.

[RunningBum]

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Originally Posted by MaryLouMaloney A friend of mine told me that him worked too many hours and what Social Security did on him was issue him his allowed amount every month. Then at the end of the year found out him worked too many hours then him had to pay back the overpaid monies Social Security gave him. The same friend told me that is because Social Security does not know how much monies one makes until one files their taxes. Does this make any sense?

I have no experience with this, but it makes sense to me.

What happens if you have them reduce your benefit now because you are working, but part way through the year you stop working for some reason, and stayed under the limit? It would seem complicated to get the benefits back.

Just estimate how much the overage is each month or paycheck, and set that aside in a separate money market account, and at the end of the year use that to pay taxes. Or have the extra withheld from your paycheck. Most places will allow an extra amount of taxes to be withheld.

[OneMarcilV]

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Originally Posted by RunningBum I have no experience with this, but it makes sense to me. What happens if you have them reduce your benefit now because you are working, but part way through the year you stop working for some reason, and stayed under the limit? It would seem complicated to get the benefits back. Just estimate how much the overage is each month or paycheck, and set that aside in a separate money market account, and at the end of the year use that to pay taxes. Or have the extra withheld from your paycheck. Most places will allow an extra amount of taxes to be withheld.

I was thinking about doing that. Can also put this in out companies savings plan because the company matches up to a certain amount.

For example the earnings are 27,040.
Minus 17,640 the difference is 9,400. If I take the 9,400 and put that in the companies retirement plan. Social Security would not see the 9,400 as earned income?

[OneMarcilV]

I found out even though anything over what Social Security will let one earn even though that us invested in a retirement account is considered earned monies.